Abbott Labs Settles Infant Formula Fraud Case for $385 Million

The settlement resolves claims that Abbott failed to meet federal safety and regulatory requirements at its plants in Sturgis, Michigan, and Casa Grande, Arizona. Between 2018 and 2022, the company allegedly certified that its powdered formula complied with strict manufacturing standards to secure contracts under the WIC program, which covers more than half of all infant formula sold in the United States. The 2022 temporary closure of the Sturgis facility—prompted by reports of microorganism contamination—sparked a nationwide shortage and prompted the Justice Department to intervene in the whistleblowers' lawsuit.

Accountability in Public Nutrition

Scott Millard, Kristine Cooper, and Loren Cooper, who worked in Abbott’s quality and maintenance divisions, initiated the case under the False Claims Act’s qui tam provisions. Their reporting provided the evidence necessary for a multi-agency investigation involving the USDA and the FDA. As a result of their role in recovering taxpayer funds, the whistleblowers are set to receive $69 million as their share of the settlement. Andrew M. Beato, chair of the whistleblowers' legal team at Stein Mitchell Beato & Missner LLP, stated that the outcome underscores the necessity of the False Claims Act in protecting vulnerable populations, noting that regulatory certifications should never be treated as mere formalities when public health is at stake.